US President Donald Trump’s proposal to send $2,000 as a tariff dividend to Americans could cost $600 billion each year, according to USA Today, citing the non-profit Committee for a Responsible Federal Budget.
The $600 billion cost is double the revenue the United States is expected to generate through tariffs announced under the Trump administration.
Although the US president did not explain the details of the $2,000 tariff dividend, analysis cited in the report assumed that the latest proposal would be designed similar to the COVID-19 stimulus given to Americans. The 2020 stimulus included payments for individual taxpayers earning up to $75,000 or $150,000 for joint income entities.
How much revenue can the US generate from tariffs?
The tariffs proposed under the Trump administration are expected to generate $300 billion each year, Fortune reports.
What did Trump promise?
On Sunday, Trump took aim at people who criticize the tariffs, promising a dividend of at least $2,000 per person, excluding high-income earners.
In a post on Truth Social, President Donald Trump wrote: “People who oppose tariffs are FOOLS! We are now the richest, most respected country in the world, with almost no inflation and a record stock market price. 401k is the highest EVER.”
He promised Americans dividends and said, “We are taking in trillions of dollars and will soon start paying off our HUGE DEBT, $37 trillion. Record investment in the US, factories and factories are going up everywhere. A dividend of at least $2,000 per person (excluding high earners!) will be paid to everyone.”
The Supreme Court raised questions about Trump’s tariffs
Trump’s proposal followed Supreme Court arguments on Nov. 5, during which several justices expressed skepticism about the tariffs. That suggested many tariffs could be lifted, potentially leading to refunds of more than $100 billion, Bloomberg reported.
The justices questioned whether the emergency law gives Trump “nearly unlimited power” to create and change import tariffs.
Trump warned that a court ruling against him would be a “disaster” for the US.
The case involves Trump’s April 2 “Liberation Day” tariffs, which impose taxes ranging from 10% to 50% on most U.S. imports based on country of origin. They argue that these tariffs are justified as a measure to address the nation’s long-term trade deficit.
At issue in the administration’s justification for the tariffs is whether the revenue they generate essentially functions as taxes, which Chief Justice John Roberts said “have always been the principal power of Congress,” the report said.
